Is Public Finance really IB ??
Been seeing posts that say PubFin is IB. Some BBs have it within IB and others have it separate. I’m not really educated on the muni space, confused on if they do the similar work of other IB groups.
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Haven’t worked in it directly but a friend of mine from HS I think started in public finance investment banking at like boutique public finance shops. Eventually moved over to JPM or another BB to do pub fin there and now I think does infrastructure / sports stadium financing / investment banking. So from what I know about his career so far seems like the work is related / or at least somewhat similar but I can only provide this high-level guidance to start you off so far. Maybe I can try to reconnect with him and see what he says and/or see if he is open to connecting with you directly to answer your questions. Either way, good luck. Best wishes
Why does it matter?
bc how are u meant to get girls if ur not classified as an investment banker
made me lol
are all public finance deals debt? if so how does that different from corporate banking debt deals
Yes they are debt, but a large majority of the debt is GO bonds not revenue bonds. So your underwriting / feasibility comes from either your State or housing taxes and you end up comparing more economic factors rather than looking at one specific industry or company.
It is investment banking, but it's niche. The main differences are that Public Finance is very debt-focused and the pitch process is usually different due to procurement rules. Some areas (P3, Infrastructure, Transportation, NFP Healthcare, etc.) are more similar to corporate IB as they do some advisory/strategy work and equity financings. If you cover a specific region and not a specific sector then it's not as similar to corporate IB. Either way, it's a FO role so juniors get paid well.
The paid well part isn’t really true. Former pub fin at a top BB and the bonuses were TERRIBLE. Like, 1/2 to 1/3 of what coverage made. The hours are a TINY bit better, but consistently work till 2/3am. Unless you LOVE the space - stay away.
Source: a triggered former pub fin banker
JPM?
Just as a Data point I worked in MM Pubfin then transferred to a coverage group BB. My total base salary at the BB was higher than my all in comp at the MM. It was great work a tone of fun and the hours weren't that bad.
It’s basically DCM for state and local governments.
^
No
It’s not lB. its just the public version of corporate banking. DCM is not banking either. They aren’t bad career paths and can actually be quite great from a work life balance stand point. One of the richest guys in my neighborhood, who owns a $3.5m house used to work as a director of Wells Fargo muni desk. In my opinion real Investment Banking is pure advisory and products. Things like M&A, RX, Lev Fin, Recaps, Divestitures, and IPOs are traditional investment banking. Unfortunately the industry has become diluted with BB banks winning clients and deals by providing a ton of ancillary services, that don’t have much to do with advisory.
Who do you thinks helps provide guidance on recaps, lev fin, and IPOs?
One of the dumbest thing I've read on this website. The first investment bankers were 100% capital markets (railroad bonds / JP Morgan) - M&A is a relatively new addition to the financial industry. Also unsure how an IPO or recap is investment banking but a debt issuance isn't.
My firm's dealflow is almost 80-90% M&A, so don't come at me as if I'm a capital markets guy trying to justify myself or something.
you do know the origin of the term investment banking came from the capital markets business right? M&A was only added later down the line. terrible take.
Call it what you will, but you're not going to get the same credit for doing public finance as you will doing "traditional" IB when it comes to recruiting and exit ops.
This is true, there will be some hurdle to get elsewhere in the field, but overall Pub fin is not a bad career field at all.
Nah it kinda sucks
Source: triggered former pub fin analyst
Yes it is!
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